Question 6.6. What has the increased use of automation and less use of the work force in companies caused a trend towards an increase in? (Points : 2)

both variable and fixed costs fixed costs and a decrease in variable costs variable costs and a decrease in fixed costs variable costs and no change in fixed costs

Question 7.7. To which function of management is CVP analysis most applicable? (Points : 2)

Planning Motivating Directing Controlling

Question 8.8. What is an example of a mixed cost? (Points : 2)

direct materials. supervisory salaries. utility costs. property taxes.

Question 9.9. What does a mixed cost contain? (Points : 2)

a variable element and a fixed element both selling and administrative costs both retailing and manufacturing costs both operating and nonoperating costs

Question 10.10. If ABC Airlines cuts its domestic fares by 30%, (Points : 2)

its fixed costs will decrease. profit will increase by 30%. a profit can only be earned by decreasing the number of flights and reducing the number of airline employees. a profit can be earned by increasing the number of passengers or by decreasing variable costs.